Professional Documents
Culture Documents
An Introduction To Retailing: Berman Evans
An Introduction To Retailing: Berman Evans
An Introduction to Retailing
BERMAN EVANS
Chapter Objectives
To define retailing, consider it from different
perspectives, demonstrate its impact, and note
its special characteristics
To introduce the concept of strategic planning
and apply it
To show why the retailing concept is the
foundation of a successful business, with an
emphasis on the total retail experience,
customer service, and relationship retailing
To indicate the focus and format of the text
1-2
Retailing
1-3
Issues in Retailing
How can we best serve our customers while
earning a fair profit?
How can we stand out in a highly
competitive environment where consumers
have too many choices?
How can we grow our business, while
retaining a core of loyal customers?
1-4
The Philosophy
1-5
An Ideal Candidate for
Retailing Career
Be a people person
Be flexible
Be decisive
Have analytical skills
Have stamina
1-6
Figure 1.3 The High Costs and
Low Profits of Retailing
1-7
Figure 1.4 A Typical Channel of
Distribution
Manufacturer
Retailer
Final
Wholesaler
Consumer
1-8
Figure 1.5 The Retailer’s Role in
the Sorting Process
1-9
Multi-Channel Retailing
1-10
Figure 1.6 J.C. Penney and
Multi-Channel Retailing
1-11
Relationship Management
Among Retailers and Suppliers
• Disagreements may occur:
control over channel
profit allocation
number of competing retailers
product displays
promotional support
payment terms
operating flexibility
1-12
Distribution Types
• Exclusive: suppliers make agreements with
one or few retailers that designate the latter
as the only ones in a specified geographic
area to carry certain brands or products
• Intensive: suppliers sell through as many
retailers as possible
• Selective: suppliers sell through a moderate
number of retailers
1-13
Figure 1.8 Special Characteristics
Affecting Retailers
Small
Impulse
Average
Purchase
Sale
Retailer’s
Strategy
Popularity
of
Stores
1-14
Retail Strategy
1-15
Six Steps in Strategic
Planning
1. Define the type of business
2. Set long-run and short-run objectives
3. Determine the customer market
4. Devise an overall, long-run plan
5. Implement an integrated strategy
6. Evaluate and correct
1-16
Figure 1.9 “Pay Less + Expect
More” at Target
1-17
Aspects of Target’s Strategy
Growth-oriented Multiple points of
objectives contact
Appeal to a prime Employee relations
market Innovation
Distinctive company Commitment to
image technology
Community
Focus involvement
Strong customer Constantly
service monitoring
performance
1-18
Figure 1.10 Applying the
Retail Concept
Customer Orientation
Coordinated Effort
Retailing Retail
Concept Strategy
Value driven
Goal Orientation
1-19
Customer Service
• Activities undertaken by a retailer in
conjunction with the basic goods and
services it sells.
Store hours
Parking
Shopper-friendliness
Credit acceptance
Salespeople
Delivery Policies
1-20
Figure 1.12 A Customer
Respect Checklist
Do we trust our customers?
Do we stand behind what we sell?
Is keeping commitments to customers
important to our company?
Do we value customer time?
Do we communicate with customers
respectfully?
Do we treat all customers with respect?
Do we thank customers for their business?
Do we respect employees?
1-21
Relationship Retailing
• Seek to establish and maintain long-term
bonds with customers, rather than act as
if each sales transaction is a completely
new encounter
– Concentrate on the total retail experience
– Monitor satisfaction
– Stay in touch with customers
1-22
Effective Relationship
Retailing
• Use a win-win approach
– It is harder to get new customers than to
keep existing ones happy
• Develop a customer database
– Ongoing customer contact is improved
with information on people’s attributes
and shopping behavior
1-23